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30,000 uninsured employers = NC Workers Compensation


30,000 Uninsured Employers – NC Workers Comp

Uninsured employers have plagued the Workers Comp system for many years. Was anyone actually shocked there are 30,000 employers (with more than two employees) that have no policy to cover their workers if injured on the job? I was shocked when this number hit the Workers Comp blogosphere.

Graphic of uninsured employers Breaking News Concept
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A very intelligent newspaper reporter for the Raleigh News and Observer compared the number of employers with three or more employees and compared the number to a number of companies covered under a Workers Compensation policy. The result was a shocking 30,000 companies.

North Carolina should not feel alone. The same type of investigation was performed in New York found that one of three companies in the state did not have a Workers Comp policy in place in case their employees sustained an on-the-job injury. These uninsured companies basically shortchanged the WC system out of $1 billion.

The North Carolina Rate Bureau (NCRB) is the Workers Comp rating organization for any companies that operate in NC. The NCRB reports to the North Carolina Industrial Commission (NCIC) when any company’s policy is non-renewed. There was nothing being done after the uninsured companies were reported to the NCIC.

Hand Holding Credit Card uninsured employers Black And White Picture

Governor Perdue wanted to get to the bottom of how 30,000 employers were not paying for Workers Compensation Coverage. The Industrial Commission’s response was they would review their internal policies on handling uninsured employers. This means nothing will probably be accomplished without a push from the Legislature.

West Virginia’s Workers Compensation Commission has provided some great examples of how to make companies come into compliance. WV sent out personnel state-wide placing warning signs on all businesses informing the public of their non-compliance.

The North Carolina Department of Motor vehicles should be the best example for the NCIC to follow. If a resident of NC lets their automobile policy lapse one day, the NCDMV sends out a $50 fine letter. I actually received one for having one day of non-coverage when switching carriers a few years ago.

North Carolina has no uninsured employer fund that would function as a safety net when there is no policy to cover an injured employee’s benefits. This would likely be a great time to consider starting a fund of this type.

I am sure this story will resurface again due to the startling numbers that were discovered by the reporter. Hopefully, there will be a more positive report the next time.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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